Income Tax Severed Letters - 2026-04-01

Technical Interpretation - External

25 February 2026 External T.I. 2025-1081921E5 - Labour requirements - Preparation or Installation

Unedited CRA Tags
subsection 127.44(1) "preliminary CCUS work activity", "qualified carbon capture expenditure", "qualified CCUS expenditure", subparagraph 127.44(9)(b)(iii), subsections 127.46(1) "covered worker", "designated work site", "specified property", "specified tax credit", subsections 127.46(2), 127.46(3), 127.46(5)

Principal Issues: Assuming all the other conditions to qualify for the CCUS ITC are met, whether the activities of: (i) excavating a hole into which a foundation will be placed that will solely be used for the installation or operation of a Class 57 paragraph (a) property, and (ii) the installation of pilings and the pouring of concrete into the hole in order to construct the foundation, are considered to be the "preparation or installation of specified property" for purposes of the labour requirements in section 127.46.

Position: Yes.

Reasons: The foundation appears to be described in paragraph (f) of Class 57 and would therefore be a specified property, assuming all the other conditions to qualify for the CCUS ITC are met. The excavation of the hole into which the foundation will be placed, the installation of the pilings and the pouring of the concrete to construct the foundation are part of the installation of the foundation (a specified property) and therefore would constitute the "preparation or installation of specified property".

22 December 2025 External T.I. 2025-1071201E5 - METC - Genetic Testing for Aneuploidy

Unedited CRA Tags
Income Tax Act: 118.2(2)(a), (n), (o) and (v) ; 118.2(2.2) ; 118.2(2.21) ; Assisted Human Reproduction Act: 65(1)(e) ; Reimbursement Related to Assisted Human Reproduction Regulations: 2, 3, 4

Principal Issues: Whether the amount paid for preimplantation genetic testing for aneuploidy (PGT-A) in the course of an in-vitro fertilization plan would qualify as an eligible medical expense for the purposes of the medical expense tax credit (METC).

Position: Question of fact.

Reasons: The amount paid for PGT-A could qualify as an eligible medical expense for purposes of the METC, provided that it meets all of the conditions of one of paragraphs 118.2(2)(o) or 118.2(2)(v) of the Income Tax Act (Act). As long as the amount for PTG-A is paid to a fertility clinic or donor bank located in Canada, it would be eligible under paragraph 118.2(2)(v) of the Act.

20 November 2025 External T.I. 2025-1078901E5 - CH ITC - Projects less than 20 years

Unedited CRA Tags
127.48(1)"clean hydrogen project plan" and "qualified clean hydrogen project", 127.48(6)

Principal Issues: Is NRCan able to confirm project plans where the expected operating duration of the project is less than 20 years (e.g., expected operating duration is 10 or 15 years)?

Position: no.

Reasons: One of the conditions that NRCan confirms in writing, pursuant to subparagraph (b)(i) of the definition “qualified clean hydrogen project” in subsection 127.48(1) of the Act, is that the expected carbon intensity of the project is determined in accordance with subsection 127.48(6). As set out in paragraph 127.48(6)(i) of the Act, the carbon intensity modelling guidance applies conclusively with respect to the calculation of carbon intensity (except as otherwise provided in section 127.48). The temporal boundary outlined in the guidance requires using cumulative data that represents the first 20 years of operation of the project in determining expected carbon intensity. Consequently, NRCan could not confirm in writing that the expected carbon intensity is determined in accordance with subsection 127.48(6) of the Act (i.e., confirm a project plan) if the expected operating duration of the project is less than 20 years.

30 May 2025 External T.I. 2022-0931461E5 - Deductibility of contributions to an RCA

Unedited CRA Tags
60(t), 248(1) retirement compensation arrangement

Principal Issues: Does paragraph 60(t) permit a taxpayer to deduct an amount for a return of non-deductible contributions paid out of an RCA where the contributions to the RCA were made by someone other than the taxpayer?

Position: No.

Reasons: Legislation.

27 June 2023 External T.I. 2023-0968841E5 - Mineral Resource Cert - XXXXXXXXXX

Unedited CRA Tags
Definition of "mineral resource" in subsection 248(1)

Principal Issues: Whether NRCan can certify that the principal mineral to be extracted from the lithium-bearing silicate spodumene deposits of the taxpayer will be a principal mineral extracted from a non-bedded deposit.

Position: Yes.

Reasons: Positive Opinion provided by NRCan.

Technical Interpretation - Internal

12 November 2025 Internal T.I. 2022-0955411I7 - Application of Parts XVIII and XIX to MICs

Unedited CRA Tags
130.1(6), Parts XVIII and Part XIX

Principal Issues: Is a mortgage investment corporation, as defined in subsection 130.1(6), an “investment entity” and a “listed financial institution” for the purposes of Part XVIII and Part XIX?

Position: General comments provided.

Reasons: The determination of whether a mortgage investment corporation, as defined in subsection 130.1(6), is an “investment entity” and a “listed financial institution” for the purposes of Part XVIII and XIX can only be made on a case-by-case basis as it requires an analysis of all of the facts and circumstances relating to a particular situation including, but not limited to, the legal structure, the investment portfolio and activities of the MIC, as well as any fund management services agreements with third parties and related provincial regulation requirements.